Increasing regulatory requirements for Illinois insurers appears to be a solution to a problem. There’s nothing wrong with the Illinois auto insurance market that needs more regulation to “fix.”
Our market is healthy, insurance customers have countless choices, and our state’s auto insurance is priced below the national average. Indeed, stronger regulation could apply the brakes in what is currently an efficient, consumer-centric insurance market.
Among those calling for tighter insurance regulation are people critical of using a range of factors to measure risk and price auto insurance. However, using these factors is the fairest way to price insurance.
Some groups are likely to be just as critical of what happens to pricing when differentiators are eliminated. All drivers pay more. Why? Because ambiguity has its price. Ignoring data points that have been proven to correlate to future claims makes it impossible to give every driver the rate they deserve. Good drivers pay more than they should when uncertainty spreads risk.
SEND LETTERS TO: [email protected] We want to hear from our readers. To be considered for publication, letters must include your full name, neighborhood or hometown, and a phone number for verification purposes. The letters should be a maximum of about 350 words.
Insurance is a data-driven business. Every data point that contributes to the accuracy of the pricing means policyholders are paying an amount that best fits their personal risk profile. Although insurance is a pooled risk, not all members of the pool should pay the same share if they represent more than their fair share of the risk.
Safe drivers deserve better. Because of this, insurers use different rating factors to distinguish good drivers from those who could look like an accident. This is about putting the consumer first. fairness above all.
Some of the rating factors that an insurer can use to price insurance coverage appropriately include creditworthiness or other demographic details that have been shown to be accurate in predicting the likelihood and cost of claims. Not every insurance company uses the same factors. That’s good news because consumers really are in the driver’s seat and have options to explore.
Illinois is a buyer’s market for insurance with more than 200 auto insurance companies competing for business. Why tinker with something that works so well?
Lynne McChristian, Senior Instructor and Director, Office of Risk Management & Insurance Research, University of Illinois at Urbana-Champaign
Do not use TIF money on La Salle Street
It is depressing to see that “The City Planning Board is focused on 6 La Salle Street regeneration projects” in the Sun-Times. The proposed use of TIFs for funding is appalling. Their use was aimed at “contaminated areas”, although this was certainly not one of them.
And the effects have been felt for 23 years. With the February 28 election coming up, the mayoral and council candidates should be reacting to that rather than to each other.
COVID and climate change have changed office work, shopping practices, travel, etc. If we can’t adapt without feeding ourselves from the public trough, we’re in trouble.
I really hope the people of Chicago will rebel at the Zoom event scheduled for March 2nd. Those elected should attend a crash course on TIFs offered by Tom Tresser’s Civic Lab. As for the developers, fuck off.
Fred J. Wittenberg, Evanston